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Especially given the same car was selling for $48k just over a year ago.
Wow I didn't realize the LFP RWD got that high in price. pretty crazy for sure.
There's all these articles on EV's being cheaper in 2024, etc...but I figured at the $26k price range, even if prices come down, that will still be a great deal and the car should hold it's value fairly well. At least that's my gamble. lol
After such a sharp drop in price, I don't expect the Model 3 to depreciate much in the future. As the economy recovers and consumers wade through all the media noise, demand should pick back up and Tesla pricing should stabilize. I wouldn't be surprised if Tesla started raising prices at some point in the second half of 2024.
That's my hope. I hate owning depreciating assets so I try to minimize it as much as possible for vehicles I decide to buy. lol
yeah.... no.
EVs are depreciating assets just like ANY other vehicle... and perhaps even worse as the new models of EVs are going to get substantially better with better batteries and efficiency.
It's like saying my VHS player was going to be worth more as more people were going to learn more about VHS and DVD.
The ONLY reason they were able to hold on value is the same reason why Ford F150 trucks went up 30% or more in MSRP or why Hyundai was able to get $30k over sticker for a 7 pax SUV. Supply and demand....
Chip shortages, COVID lockdowns dramatically decreased supply, and billions of dollars in free money provided a TON of stimulis... people went out and spent like drunk sailors.
So that is with REGULAR demand... where MSRP increase over time.
What does Tesla want and Elon on a mission to do?
DROP THE PRICE OF EVS EVEN MORE!
So why would ANYONE think that their old, Model 3s are somehow going to maintain their value?
is My iPhone 12 now worth more money cause people are buying cell phones and my iPhone 15 Pro Max is better?
Cars a HORRIBLE investment in short term (unless you wait for it to a collectors item in 30 years), and Tesla is combining the depreciation of cars with Tech.
PS, I am totally not qualified to talk about this topic, I only ran an invesment advisory practice for 15 years and only still occassionally publish on Seeking Alpha and other finance outlets.... BUT.... "economy recovers?"
Yeah, we are on the brink of a major collapse... nowhere near on the verge of recovery... The Fed signaling 6 rate cutes in the next 12 months is NOT a sign of recovery.
Our own internal data shows massive declines in online retailer sales datas and many of our clients are cutting jobs left and right. A few of our closer clients shared that their Black Friday/Cyber Monday sales were down around 30% year over year. They had more transactions but average order dollar amount was about 40% lower.
What is happening right now is a massive pump and dump as institutional investors are propping up the market while they are repositioning. As soon as they are done, get ready.
GFC of 2008/9 will seem like child's play.
Personally, more than 50% of our assets are cash, gold and silver... physical.
Well, Elon did state that much. He's could be lying
I really do want to see how low Elon can get his cars to be. He's definitely embarrassing a lot of ICE manufacturers. I think he personally gotten other manufacturers to lower their prices.For sure. Just look at the impact that Tesla had on Polestar and Hyundai Ioniq.... I REALLY like the Ioniq 6 but the Tesla prices are just very competitive.Well, Elon did state that much. He's could be lying
Also, let's keep in mind, very soon we will have Chinese EVs here as well. They are already giving Tesla a major run for their money in Europe, Asia and now in Mexico too.
Even Elon is on the record as saying that a Chinese manufacturer would be the EV leader ahead of Tesla soon.
I only read 3, not sure where you got 6 rate cuts in 2024:
Fed leaves interest rates unchanged again, signals three cuts coming next year
The Federal Reserve on Wednesday paused its interest-rate hike campaign for the third straight time amid growing evidence that high inflation is subsiding.
www.foxbusiness.com
Retail sales still up, maybe not as great, but not like it even dropped/declined. I'd be cautious when one has their own bias due to their own mindset. Fed rates being at 5-6% (right now) is recent historically high so a rate cut isn't doom/gloom IMO. If people are doing so bad, no one would eat out or take any trips at all.
Holiday Spending Grew This Season, Mirroring Pre-Pandemic Habits
Retailers were fearful that inflation would deter consumers from spending money.
As for vehicle pricing, it's still all supply demand. If there is too much, Tesla will keep cutting prices. This isn't a case where Tesla will destroy the cars like luxury bags, etc. or, as most manufacturers, they will just stop making them, cut production lines.
"Personally, more than 50% of our assets are cash, gold and silver... physical."
This is also concerning. If you have $$ in the game, I don't think/trust that the views are unbiased as an economic collapse would benefit you being in cash/gold/physical. Stock market at like all time highs right now honestly. My non-advice is don't trust internet commentary from random users on a forum, any forum.
I don't buy the Chinese EVs coming here quickly neither. Tariffs alone will stop them from being price competitive probably, not to mention general US people hate for China. I think the Chinese brands from some video I saw (yeah, some opinions) are actually worried about the Korean EV brands.
Not even Asian Americans like China:
Most Chinese Americans and other Asian Americans are unhappy with China, poll shows
A Pew Research Center survey of more than 7,000 Asian Americans found most see their ancestral homelands favorably -- except for Chinese Americans.
www.usatoday.com
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I too am "unqualified" to talk about this topic so I look forward to rereading your post in 12 months.
I make investment decisions based on that. But when buying a car, it is an expense for us, simple as that. Buy it, generate money from it for our business, then write it off, use it. It's a depreciating asset.
I really hope people don’t make financial decisions based on this kind of thinking.
But based on that thinking... People were buying Teslas for $20k more right?
Or Model S Plaid at 100k or more?
I am merely point out the fact that you cannot seriously expect a depreciating asset to suddenly keep it's value unless there is an outsized market force, such as another lockdown and trillions in free money sending everyone to go buy cars. Americans spend, not save.
Absolutely.
We know what the fundamentals are. Yes, the Fed can keep on printing and increasing the money supply, however at a certain point the party crashes.
In 2023 we had some MASSIVE bank failures... and more in total assets failing than in 2008/2009 GFC.
Massive bank failures in 2023 did like nothing to like no one I think. Everyone got covered from SVB right? My point is that the market/extending/kicking the can down the road can last longer than we possibly can still be alive so better IMO to just not make some grand "prediction". You being invested a certain way (50% hard assets/gold/etc) also makes one blind I feel because you simply have too much invested in this to be objective at this point.
If anything, you're better off taking a hard look if your view is simply wrong actually. If you've been 50% for a long time, you've missed out on tons of growth. Market up 25% this year, 90%+ in 5 years for S&P I think.
Like they say, the market can be irrational longer than you can be solvent so it doesn't matter really. Politicians/people love kicking the can down the road. It's what governments do.
I do agree with you that Tesla car prices can go down and a Tesla EV is "just" an EV. We already saw that with MY prices dropping from $67k? to $40k? now or something. Elon has also said he has no plans to keep prices high so there's that.
ucmndd
Well-Known Member
lol, no. I can’t see a single one of them making headway against a 25% tariff in the current market. Not a chance.
China is a huge market. 25% tariff?? I don't think anyone wants a trade war? Also, doesn't china own a bunch of our debts??? I think USA would be hurt if china decides to sell a lot of our debt.
Anyways, not a economics expert, just some guy who can't wait until Tesla's become like Toyotas so he can buy a used one.... from a private seller... in cash since they would priced so affordable.
"everyone got covered" - WITH TAXPAYER MONEY
We pay the freight in the end for it all.
It's not free, it's not without consequence, and it's all swept under the rug by the pols, so you...believe it ?
Like college tuition loan forgiveness - the loans spurred a major increase in tuition fees, and now the chumps who paid off their loans or worked a job get it up the .....
Like "universal basic income" - it would just spur further inflated costs.
be careful what you wish for.
ucmndd
Well-Known Member
There is currently a 25% import tariff on Chinese manufactured vehicles in the United States. It already exists and was enacted by the Trump administration.
That is, in no small part, why there are zero vehicles manufactured in China currently sold in the US.
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